KNIGHT CAPITAL ACQUIRES LIBERTAS FIXED-INCOME BROKERAGE
Posted May 6, 2006
JERSEY CITY, N.J. – Electronic market access and trade execution
services provider Knight Capital Group Inc. (Nasdaq: NITE) plans to
acquire boutique institutional fixed-income brokerage firm Libertas
Holdings LLC, for about $50 million cash and $25 million worth of
unregistered stock, as well as a potential earn-out of up to $75 million
on the stock based on Libertas’ future performance in the three years
following closing of the acquisition – for a total consideration of up
to $150 million.
“Libertas is a fast-growing, fixed-income boutique that provides
buy-side clients with well-respected proprietary research and
much-needed liquidity in the trading process,” says Thomas M. Joyce,
Chairman and Chief Executive Officer, Knight Capital Group. “Since its
founding, Libertas has exhibited steady revenue growth and trading
volumes that belie the firm’s modest size. Following the deal close,
Knight will have a powerful equity and fixed-income distribution
network.”
Greenwich, Conn.-based Libertas, founded by Gary Katcher, its Chief
Executive Officer, in 2002, also provides proprietary research on
companies and sectors. “Joining Knight presents a perfect fit and the
next logical step for Libertas,” says Katcher, who will join the Knight
management team. “Our shared strong client focus, combined with the deep
resources of Knight Capital Group, will allow us to grow all aspects of
our fixed income business much faster than if we had opted to remain
independent.”
Knight serves more than 1,700 buy-side firms, while Libertas has offices
in